Jim Jeeves Is a Self-Employed Individual

question 77

Essay

Jim Jeeves is a self-employed individual. During the current year, his car which he used 70 percent of the time for business and 30 percent for pleasure was totally destroyed in an accident. fte car had a fair market value of
$26,000 before the accident, which was less than the car's adjusted basis. Jim received only $2,000 as a recovery from his insurance company. His adjusted gross income is $48,000. What is the amount of the personal casualty loss deduction that Jim can report as an itemized deduction for the year?

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Definitions:

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